Moneycontrol
Last Updated : Feb 20, 2019 10:56 AM IST | Source: Moneycontrol.com

Jaypee Infratech stock locked in upper circuit as JP Assoc offers to repay dues

The settlement offer comes even as two bids have already been placed for acquiring Jaypee Infratech under IBC from state-owned NBCC and Suraksha Group, as reported by CNBC-TV18 earlier.

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Jaypee Infratech shares were locked in 5 percent upper circuit at Rs 2.87 on Wednesday after Jaiprakash Associates offered to repay all of the company's dues.

There were pending buy orders of 691,344 shares, with no sellers available on the BSE, at 10:15 hours IST.

The promoters of debt-ridden Jaypee Infratech (JIL) have made a last minute offer to withdraw the company from insolvency proceedings, sources aware of the development told CNBC-TV18.

In a letter dated February 15, Jaiprakash Associates (JAL) - promoters of JIL - made an offer to the financial and operational creditors of JIL under Section 12A of the Insolvency & Bankruptcy Code (IBC), said people familiar with the matter.

The settlement offer comes even as two bids have already been placed for acquiring Jaypee Infratech under IBC from state-owned NBCC and Suraksha Group, as reported by CNBC-TV18 earlier.

Banking sources pointed out that NBCC is seen as the frontrunner by the financial creditors, with a higher upfront payment of Rs 1,000 crore compared to Rs 30 crore, offered upfront by rival Suraksha Group.

As per this offer, JAL is offering an upfront payment of Rs 1,500 crore to the financial creditors of Jaypee Infratech, another Rs 4,858 crore from transfer of 100 percent shareholding of JIL's Land Bank SPV (having a land bank of 1,475 acres) to financial creditors towards settlement of dues via a debt-asset swap and Rs 2,000 crore as optionally convertible debentures at a coupon rate of 0.01 percent per annum.

Sources added that JAL has also sought a complete waiver of Rs 1,425 crore interest payment due to the financial creditors.

As for the home buyers, sources told CNBC-TV18 that JAL has offered to complete the projects at Wishtown Noida over three years and projects at LP-3, Mirapur, over a period of four years from the date of final approval.

In addition, JAL has also offered a waiver of 50 percent of the stamp duty charges, one-year free maintenance to all home buyers and 2,000 equity shares out of JAL's own equity in JIL to each home buyer, as per sources.

JAL has also offered to settle the entire sum of Rs 120 crore owed to fixed deposit holders up front. As for the operational creditors, JAL has offered to pay Yamuna Expressway Industrial Development Authority (YEIDA) Rs 75 crore upfront and Rs 150 crore in suitable half-yearly instalments. It has also promised Rs 3 crore upfront payment to other operational creditors for their dues, said sources.

JAL had earlier submitted Rs 750 crore in the interest of the homebuyers in the Supreme Court in 2018, which the apex court has transferred to National Company Law Tribunal (NCLT) Allahabad now.

At 10:15 hours IST, the stock was quoting at Rs 5.06, up Rs 0.05, or 1.00 percent on the BSE. (With inputs from CNBC-TV18)
First Published on Feb 20, 2019 10:56 am
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